The issue with Scots struggling with debt has been highlighted with new figures that reveal that growing numbers of Scots are declaring themselves as insolvent.
Indeed, year-on-year, the number has risen by 12%, the Accountant in Bankruptcy’s latest figures reveal.
The organisation says that for the second quarter of this year, personal insolvencies totalled 3,466.
That number includes protected trust deeds and bankruptcies compared to 3,077 over the same period last year.
In the same quarter, the number of bankruptcies reached 1,178, a rise of 1.6%, while the number who have signed up to debt repayment programmes under the Debt Arrangement Scheme reached 751, a rise on last quarter’s figure of 636.
One of the issues for people living in Scotland is accessing the right debt advice so they know how to resolve their debts.
A Scottish trust deed enables someone to write off an affordable debt
While a Scottish trust deed enables someone to write off an affordable debt, they will have repay their creditors what they can afford for over 48 months beforehand.
For those who own their home, this may be a sound step and they will need to speak with those who understand how the process works.
Alternatively, Scots wanting to get out of debt can also sign up to the debt arrangement scheme (DAS), which runs on similar lines.
The big difference when it comes to the debt arrangement scheme and the Scottish trust deed is that with the DAS, which is run by the Scottish government, all of the debt is repaid.
For many, that will bring a huge relief for their financial situation and it’s important to speak to the Scotland’s Trust Deed’s friendly debt advisers who can offer impartial advice, which means you don’t have to follow what they may recommend.
Resolving debt in Scotland
There are also alternatives for resolving debt in Scotland, including sequestration, which is another name for bankruptcy, but you could also consider:
- Informal negotiation with creditors
- Debt consolidation
- Debt write-off
- A full and final settlement of debts
- A debt management plan
- Remortgaging or securing equity release
Help and information about a Scottish trust deed
For more help and information about a Scottish trust deed or the debt arrangement scheme, then you need to speak with the friendly team at Scotland’s Trust Deed today on (0141) 297 1178.